Smart Gen-Z Lured By Digi Gold Bonds

Changing Investment Patterns

Unlike the older generation, young professionals are investing in digital gold this Diwali season. Traditionally, Dhanteras has been synonymous with the purchase of physical gold — ornaments, coins, and bars — to mark prosperity and good fortune. However, this year, many jewellers noticed a decline in footfall from the younger demographic.

Rising gold prices, currently hovering around `1,28,100 per 10 grams for 24 karat gold, coupled with growing financial literacy, have pushed many young investors to explore paper and digital forms of gold.

“I would love to buy jewellery, but it just doesn’t make financial sense right now,” says Sneha Verma, (27), a marketing professional from Bengaluru. “The making charges and GST add a hefty premium to the price, and there’s always the worry of storage and safety. With digital gold, I can invest in smaller amounts and don’t need to worry about lockers or insurance.”

Growing Digi Appeal

The convenience of investing through mobile apps and digital platforms has made ETFs and SGBs particularly attractive. Many fintech platforms now offer gold investment options starting from as low as `100, enabling young earners to invest regularly without needing a large upfront sum.

Sovereign Gold Bonds (SGBs), issued by the Reserve Bank of India (RBI), are especially popular because they offer an annual interest rate of 2.5% in addition to potential capital gains linked to gold prices. Gold ETFs, on the other hand, allow investors to track gold prices without physically owning the metal, providing liquidity and ease of trading through the stock exchange.

Sunil Srivastava, a Mumbai-based Chartered Accountant, observes, “We’re seeing a noticeable increase in first-time investors, especially those in their 20s and early 30s, opting for SGBs. They like the idea of earning interest and avoiding storage hassles. Plus, the tax exemption on capital gains if held till maturity makes SGBs a very smart long-term bet.”

Price Matters

The rising gold prices are a key driver. One of the biggest factors driving this shift is the soaring price of physical gold. Over the last two years, global economic uncertainties, inflationary pressures, and geopolitical tensions have pushed gold to record highs. For young Indians, many of whom are still early in their careers, the steep costs make jewellery purchases less appealing.

Gold and silver prices have touched an all-time high across India. On October 18, the prices of 18, 22 and 24 Karat Gold in Chennai, Bengaluru, Hydera-bad, Mumbai, and Delhi hovered around `13,278 per gram for 24K gold, `12,170 per gram for 22 K gold and `9,959 per gram for 18K gold. Furthermore, the resale value of jewellery is often lower due to making charges and wastage deductions. Digital gold options, by contrast, offer greater price transparency and no depreciation due to design or manufacturing.

Tech Fuels Boom

The proliferation of financial education content on social media platforms has played a crucial role in this change. From Instagram finance influencers to YouTube explainers, today’s youth are far more aware of investment instruments and are eager to explore beyond traditional savings options.

Fintech apps like Groww, Zerodha, Paytm, and PhonePe have also simplified gold investing. With just a few taps, investors can buy, track, and redeem their gold holdings in real time. This level of accessibility has made gold invest-

ment almost as easy as ordering food online.

According to Anshika Pandey, an investment advisor at a wealth management firm, “Digital gold has become the bridge between tradition and modern finance. Young investors still value gold culturally, but they prefer to hold it in a way that aligns with their digital-first lifestyle. SGBs and ETFs offer that perfect blend of safety, returns, and convenience.”

A Cultural Shift

While older generations often associate gold with weddings, heirlooms, and festivals, younger Indians are viewing it through a financial lens rather than purely an emotional one. However, this doesn’t mean they’re abandoning tradition altogether. Many prefer to invest digitally during Dhanteras and later convert some of their holdings into physical gold when required for ceremonies or gifting.

Jewellers, meanwhile, are adapting by offering online purchase options and buyback guarantees to appeal to this new customer segment. Some are even partnering with fintech companies to provide hybrid investment models.

Smart Investments

This Diwali season, industry analysts predict that the demand for physical gold will remain steady among older buyers, but digital gold investments will see a sharper uptick, especially among urban youth and professionals.

With inflation concerns and market volatility persisting globally, gold remains a trusted hedge. The shift towards digital formats indicates not a rejection of gold’s cultural significance, but a modern reinterpretation of it.

As Anshika Pandey sums it up: “Gold is still gold for Indians. The difference is in how the new generation chooses to hold it — digitally, securely, and smartly.”

Easy Investment

• Fintech apps like Groww, Zerodha, Paytm, and PhonePe have also simplified gold investing.

• Youngsters are opting for digital gold investments, including Gold Exchange-Traded Funds (ETFs) and Sovereign Gold Bonds (SGBs)

• Gold ETFs allow investors to track gold prices without physically owning it

• RBI’s Sovereign Gold Bonds (SGBs) offer an annual interest rate of 2.5% in addition to potential capital gains linked to gold prices

THE GOLD RUSH

On Dhanteras festival, the prices of 18, 22 and 24 Karat Gold in Chennai, Bengaluru, Hyderabad, Mumbai, and Delhi hovered around `13,278 per gram for 24K gold, `12,170 per gram for 22 K gold and `9,959 per gram for 18K gold.